Rejected loan applications

In the given situation, it is understandable that all applications might not be entertained

There is a close relationship between a government’s capacity to work for the improvement of the quality of life of the people and the financial resources that the former commands. The tough economic condition that Pakistan currently faces is reflected in the rejection of more than half of the applications submitted for obtaining loans under the government’s Kamyab Jawan employment programme. The loans, ranging from Rs100,000 up to Rs25 million, are meant for jobless people between the age of 18 and 45 years. The loan amounts are provided, on easy terms and conditions, especially to those having entrepreneurship potential. Obviously, the purpose of the scheme is to reduce the unemployment rate in the country.

In the year 2020-21, the number of jobless stood at 6.65 million, and the figure is likely to increase in the current year due mainly to the growing population of the country and the deteriorating economic situation. There are several underlying facts and issues about the rising rate of unemployment. The foremost is the unsatisfactory state of the economy. Successive governments spent more than their income revenues. Prime Minister Imran Khan has repeatedly said he inherited a badly depleted state coffer, and this compelled his government to seek loans from friendly countries and from the IMF. It is common knowledge that states go to the IMF to be bailed out of economic difficulties, hence the tough conditions attached to loans provided by the international lender. These circumstances have left the government with Hobson’s choice — to choose between one thing and nothing.

On the one hand, the government is confronted with tackling fiscal deficit and cutting down development spending and, on the other, with increasing its revenues for debt servicing. In the given situation, it is understandable that all applications whether they are for the Kamyab Jawan Programme or for the housing scheme, etc might not be entertained.

Published in The Express Tribune, October 19^th, 2021.

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